Exxon Mobil Corporation (XOM.US) seeks new mergers and acquisitions: following the Pioneer acquisition, pursuing synergies to achieve "1+1>3".

Exxon Mobil Corporation CEO Darren Woods revealed during a press conference call that the energy giant is actively seeking to acquire smaller rival companies, continuing its strategy of creating value through strategic integration. One year ago, Exxon Mobil Corporation completed the acquisition of Pioneer Natural Resources Company for $60 billion. Woods emphasized that future mergers and acquisitions will focus more on the synergy of assets and professional capabilities, rather than simply pursuing scale expansion. Woods stressed that real value creation requires achieving a "one plus one equals more than three" effect, as demonstrated in the Pioneer acquisition case. He pointed out that fluctuating oil prices are creating operational pressures for oil producers, with some companies forced to maintain shareholder return initiatives that have been steadily increasing since 2022. Against this backdrop, super energy companies like BP p.l.c. Sponsored ADR have frequently become the subject of market merger speculations due to pressure from activist investor Elliott Management Corporation. According to a statement released on August 1st, Exxon Mobil Corporation's revenue in the second quarter reached $81.5 billion, with an adjusted net profit of $7.1 billion, or $1.64 per share. Meanwhile, Exxon Mobil Corporation paid out $4.3 billion in dividends and maintained a yearly $20 billion share buyback plan, easing investor concerns about the oil giant's ability to maintain shareholder returns during a period of soft commodity prices. Although no specific acquisition targets or types of assets were disclosed, Woods clearly outlined the red line for transactions: any acquisition must create value beyond what could be achieved by the entities operating independently as standalone businesses. This contrasts sharply with the common "production consolidation" deals seen in the industry recently. He specifically mentioned that Exxon Mobil Corporation did not take the traditional route of cost-cutting through layoffs when acquiring Pioneer, but instead achieved strategic synergy by integrating the strengths of both companies. This model will be the core principle for future mergers and acquisitions. Industry analysts point out that Exxon Mobil Corporation's acquisition strategy, under the dual pressures of energy transition and market cyclicality, reflects a new trend among traditional energy giants to strengthen competitiveness through precise integration. Woods' statement not only continues the company's past successful experiences but also provides a new dimension for evaluating the value of industry merger transactions.